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A company sells a subscription service for $120 annually, paid upfront. The service is delivered evenly over the year. How much revenue should the company
A company sells a subscription service for $120 annually, paid upfront. The service is delivered evenly over the year.
- How much revenue should the company recognize monthly?
- How much revenue will be recognized after 6 months?
- How much revenue remains to be recognized at the end of the year?
- How should the company record the initial cash received in its financial statements?
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